The idea of watching somebody do something you’re quite capable of doing yourself goes back nearly twenty years to the advent of reality TV. Back then, it was a simple curiosity but, today, with the appearance of live-streaming services like Twitch, Facebook Gaming, and YouTube Gaming, it can be a lucrative career. Let’s not forget the fact that popular Fortnite streamer “Ninja”, also known as spiky-haired American Tyler Blevins, once made half a million dollars in a month playing Epic’s first-person shooter.
The economy of video gaming and streaming, in particular, is, therefore, something of interest. How do streamers actually make their cash?
Monetisation
Inevitably, each platform offers different ways to monetise content. Jeremy Wang or “DisguisedToast” on Twitch and YouTube, earns a basic $10,000 a month from fan donations, sponsorships, subscriptions, and ad revenue. Wang notes that appearances at conventions and other live events can earn him a month’s wage in one go, beginning at $5,000 and climbing to $10,000. YouTube is comparatively stingy, with fewer ways to monetise. The site pays $0.00074 per stream, meaning that almost all (96.5%) content creators cannot make a living from streaming. Digital Music News cites the example of a YouTuber who made just $1,472 from 2.2m views.
For gamers, the solution to low wages on YouTube has been in spreading their brand across multiple platforms, something that has become easier due to the number of companies trying to take advantage of the streaming medium. From travel companies to casino brands, live streaming is a versatile way to connect with new customers. For example, Paddy Power successfully digitalised the casino experience by offering live-streamed roulette games, meaning that the best casino roulette can be accessed at the touch of a button. Similarly, Home Depot live-streamed a DIY tutorial with Martha Stewart, while Gwen Stefani created the world’s first live music video.
Buzzfeed, on the other hand, filmed a watermelon exploding.
Facebook ‘Stars’ and Partnerships
Facebook Gaming has emerged as perhaps the biggest threat to Twitch and YouTube’s combined supremacy over the live-streaming space, despite being less than two years old. Business Insider claims that the platform is much easier to make money from, with the possibility of management from Facebook and the perks of a regular paycheck standing alone in the industry. Monetisation is simple: fans buy ‘Stars’ (100 for $1) and gift them to streamers they like. They can also subscribe to a streamer ($4.99). The option to become a partner of Facebook Gaming is the key to snaffling up some of the Zuck’s bucks though. The network will open up new revenue streams to popular streamers.
Evidently, competition in the live-streaming world may benefit content creators above all else, as one platform prices itself out of the market compared to another. And, with clumsy technologies like YouTube’s copyright system continuing to punish the wrong people, it will be interesting to see which of the big technology companies gets to wear the live-streaming crown five or ten years down the line.
